The electric vehicle industry has experienced notable developments over the past 48 hours. Most prominently, Tesla’s Q3 earnings showed record sales of 28.1 billion dollars in revenue, an increase of 12 percent year over year, but net income plunged by more than 25 percent due to price cuts, tariffs, and heavy spending on artificial intelligence and autonomy projects. Tesla’s automotive gross margin fell to about 15 percent, down from 18 percent last year, and operating expenses surged nearly 50 percent during its transition toward autonomous robotaxis and robotics. Despite this, the company holds a robust cash reserve of 41.6 billion dollars and is seeing strong growth in its energy storage division, with revenue rising 44 percent to 3.4 billion dollars. This division now accounts for more than 20 percent of Tesla’s gross profit, stabilizing the company as its core vehicle business faces margin compression and increased competition. Tesla is accelerating its rollout of unsupervised self-driving and humanoid robots, but analysts say that margins and regulatory milestones will be key in the coming quarters. The next few months will focus on execution rather than hype, as Tesla will need to prove that its new initiatives can deliver steady profitability and technological credibility in the face of declining regulatory credits and tariffs.
General Motors also reported an all-time high for EV sales in Q3, with 438,487 units sold in the US, accounting for 10.5 percent of all vehicle sales. However, GM’s CFO stated there was a significant pullback in demand in October following the end of the federal tax credit, anticipating market stabilization in 2026. Companies like Ford, Hyundai, and Kia also recorded record EV sales last month. Ford expects hybrid demand to rise as EV incentives decline. Automakers are responding to these challenges with price cuts, discounts, and leasing promotions, such as Chevy offering 4000 dollars off its Silverado EV and interest-free financing in October.
Innovation continues with Uber rebranding “Uber Green” to “Uber Electric,” offering drivers a 4000 dollar grant to switch to EVs, and Volvo launching a free home charging initiative in Sweden in partnership with Vattenfall to boost consumer adoption. Rivian’s spinoff introduced a new 4500 dollar e-bike and secured a strategic deal with Amazon.
Supply chain trends highlight a surge in vehicle-to-grid technology, with over 400,000 V2G-enabled vehicles registered in Europe and OEMs pushing full integration in 2025 models. Notably, research breakthroughs are optimizing battery management and reducing degradation, fueling growth in grid storage capacity.
Compared to earlier months, the industry is shifting from aggressive growth to consolidation. Incentives are dwindling, margins are squeezed, and competition intensifies, but companies are pivoting with new business models and partnerships to attract consumers and stabilize profits in a rapidly maturing market.
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